Where Did $500 Billion in AI Wealth Go?

Right now, I believe the market is entering a once-in-a-generation rotation – one that most investors won’t recognize until it’s already too late.

Over the past month, up to $500 billion in wealth has already fled popular artificial intelligence (AI) names to what I call “stealth” AI names.

If you miss this rotation… if you’re holding the wrong AI stocks… or if you’re simply not paying attention… you’re making a dangerous mistake.

Once this rotation begins in full – and it’s already underway – you won’t just risk giving back years of market gains. Your losses could be so severe they permanently derail your retirement plans.

Before I tell you where I believe this $500 billion in AI wealth is headed, let me take you back to the dot-com crash to show you why you need to act now.

In the early 2000s, at the height of the dot-com bubble, hot internet stocks like AOL, Cisco, Sun Microsystems, and Yahoo traded at up to 100x their forward earnings. That’s more than 6x the long-term average of the entire S&P 500.

If you got in those names early, great for you. But if you got in late, once the party was over, everything came crashing down.

When the bubble burst, the tech-heavy Nasdaq dropped nearly 78%, wiping out over $5 trillion in market value.

Those popular, “can’t-miss” internet stocks like AOL, Cisco, Sun Microsystems, and Yahoo did even worse. Over 90% of their value evaporated into thin air.

Here’s the thing: The crash happened so fast, most folks didn’t have a chance to get out.

Investors who piled in those names paid a brutal price. Just look at Cisco. It took 25 years for the stock to break even. The others never recovered.

Friends, I don’t know about you, but I don’t have a quarter-century to wait for a stock to recover. I’m 55 years old. I’ll run out of useful life. It’s just not an option for me.

And I imagine it’s not an option for you, either.